Investor Presentation First Quarter 2012

1. Investor Presentation First Quarter 2012 NASDAQ: EGOV www.egov.com/investors

2. Forward-looking statements Cautionary Statement Regarding Forward-Looking Information Any statements contained in today’s presentation that do not relate to historical or current facts constitute forward-looking statements. These statements include statements regarding the Company’s potential financial performance for the current fiscal year, statements regarding the planned implementation of new portal contracts and an application consolidation project in Texas and statements regarding continued implementation of NIC's business model and its development of new products and services. Forward-looking statements are subject to inherent risks and uncertainties and there can be no assurance that such statements will prove to be correct. There are a number of important factors that could cause actual results to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, NIC’s ability to successfully integrate into its operations recently awarded eGovernment contracts; NIC’s ability to implement its new portal contracts and portal consolidation project in a timely and cost-effective manner; NIC's ability to successfully increase the adoption and use of eGovernment services; the possibility of reductions in fees or revenues as a result of budget deficits, government shutdowns or changes in government policy; the success of the company in signing contracts with new states and federal government agencies, including continued favorable government legislation; NIC's ability to develop new services; existing states and agencies adopting those new services; acceptance of eGovernment services by businesses and citizens; competition; the possibility of security breaches through cyber attacks; and general economic conditions and the other important cautionary statements and risk factors described in NIC's 2010 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2011 and in NIC’s Quarterly Reports on Form 10-Q filed with the SEC in 2011. NIC does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances.

3. Company overview • First contract – Kansas • Creates the outsourced eGovernment • industry • Pioneers innovative funding model 2012 • 26 state & 2 federal partners • Headquarters: Kansas City area • 650+ employees nationwide – in state capitals 20 Years of eGovernment Innovation NIC is the nation’s premier provider of official government websites, online services, and secure payment processing solutions for more than 3,000 federal, state, and local agencies across the United States.

4. YEAR OFMANDATORYCONTRACTREBID 2021 2021 2020 2019 2019 2018 2018 2017 2016 2016 2016 2016 2015 2015 2014 2014 2014 2014 2014 2013 2013 2013 2013 2012 2012 2012 2012 2012 2012 YEAR SERVICES COMMENCED 2011 2011 2001 2012 1999 1997 1999 2011 1992 1995 2000 2009 2000 2003 2005 2009 1995 2001 2005 2007 2000 2009 2007 2002 1997 1997 2001 2006 1997 Leading the industry: current partners GOVERNMENTPARTNERS Oregon Mississippi Montana Maryland Utah Arkansas Maine Delaware Kansas Nebraska Tennessee Texas Idaho Kentucky Colorado Federal DOT/FMCSA Indiana Oklahoma South Carolina Arizona Hawaii New Mexico MVD West Virginia Alabama Federal Election Commission Iowa Rhode Island Vermont Virginia Partner state State with active RFPs Contract signed; not yet financially viable Long-term contracts = high revenue and operational visibility. Barriers to exit: NIC has renewed every contract extension and competitive rebid. All partners are references – the gold standard in government!

5. Dedicated, local team in capital city • Unique business model – enterprise-wide services to all agencies, even those that don’t generate revenue • Focus on our partners’ customers – application development and web expertise for business- and citizen-to-government online services • Proprietary, government payment processing – more than $17 billion secure payments in 2011 • Security* • Fee collection and disbursement, with financial reports tailored to government agencies’ specific needs • Marketing of services to promote use by citizens and businesses • Transparency Delivering end-to-end eGovernment value * NIC’s rigorous security practices include PCI-DSS compliance, third-party audits and SAS 70 Type II certification for payment processing.

6. A unique self-funded business model Partner benefits: - sustained funding - updated technology/ reduced risk - vast applicationlibrary/deployment speed - efficiencies/cost- savings - award-winning sites & services • No tax appropriated funding required • NIC makes up-front investment and funds ongoing operating and capital costs • Fees generated by services that create efficiencies for businesses and citizens • Transaction-based, population-driven model • Recurring, annuity-like revenues: do not have to win back customers year after year User benefits: - efficiencies - one-stop convenience - security - awareness - in-demand services - quick interaction NIC benefits: - non-cyclical, recurrring revenues - highly scalable model - barriers to exit

7. Business cycle: an RFP to applications 1 2 RFP & CONTRACT AWARD - National sales team of ~15 - Identify champion: Governor, Chief of Staff, CIO - 18-24 mo. process to state issuing RFP - Multi-year base contract term with renewals LAUNCH - Establish dedicated team in capital city - Modest up-front investment per portaltypically $500K-$1M – payback usually within 12 mos. 4 3 DMV = foundation - Driver history records (DMV) used primarily by insurance companies to set rates - Single largest revenue generating service in every state; serves as foundational funding source - ‘Go live’ typically 3-6 mos. after state contract is secured NON-DMV = growth - Hundreds of business-to-government and citizen-to-government services - Business applications: ( ~75% of revenue) Banking & legal, licensed professions, limited criminal histories - Citizen applications: Vehicle registrations, hunting & fishing license, vital records (birth & death certificates)

8. Self-funded: low-risk, high-reward model $0.50 Per capita of revenue from DMV 30%+ Gross margins 1st year of DMV revenue 10%+ Annual same-state revenue growth goal by launching non-DMV services 40%+ Gross margin goal over time Add-on non-DMV services drive revenue and margin growth Initial DMV service priced to cover fixed costs plus profit Four Categories of Portal Revenue: NON-DMV DMV FIXED FEES TIME & MATERIALS • Hundreds of services • Transaction-based/recurring • 20%+ growth goal • ~ 45% of portal revenue • Recurring portal management feearrangements in Arizona, Delaware, and Indiana • ~ 5% of portal revenue • Driver history records • Transaction-based/recurring • 1-3% growth • ~ 40% of portal revenue • Project-based fees paid by states • Non-recurring • ~ 10% of portal revenue 85%+ recurring portal revenues, secured by long-term contracts

9. A successful foundation delivering consistent growth • Long-term growth: • New services:Organic, same-state growth driven by new services and adoption, which includes mobile innovation, and county & local services • New partners:Goal of adding 2 states per year • New federal opportunities: Building on the momentum of the DOT FMCSA self-funded contract

10. Pre-Employment Screening Program • 1st self-funded federal service • Truck driver safety records for new hires • 600,000 records accessed in 2011 • $6 million in revenue in 2011 • New Federal Opportunities • Dedicated business development team • Educating federal agencies about our model • Focus on business-to-government transactions Federal self-funded opportunities: leveraging state success

11. Balance sheet & capital structure DECEMBER 31, 2011 Working capital $ 61.6M Days sales outstanding (DSO) 6 Long-term/short-term debtNONE Strong cash flow and balance sheet provide financial flexibility • Cash generation = more than $133M in special dividends paid since 2007: • $47M ($0.75 /share) paid 02/2007 • $16M ($0.25/share) paid 02/2008 • $19M ($0.30/share) paid 02/2009 • $19M ($0.30/share) paid 02/2010 • $16M ($0.25/share) paid 12/2010 • $16M ($0.25/share) paid 1/2012 • ≈ 64.3M diluted shares outstanding • Board and management own ~10% of TSO

12. 2012 investments pave way for accelerated growth in 2013 GUIDANCE 2012* (MILLIONS EXCEPT FOR EPS) 2011 2010 2009 *2012 guidance does not include revenue from unannounced contracts.

13. Investment highlights: superior value and consistent growth NIC is eGovernment – we created it and we lead the industry Unique focus – bringing efficiencies and convenience to our partners’ customers Self-funded business model – no tax appropriated dollars, especially important during a slow economy Consistency – recurring revenues and organic growth secured by long-term contracts A healthy state pipeline – and we’ve recently expanded our federal presence High returnon investment – and a history of returning capital to stockholders

14. Contacts ANGELA SKINNER Director of Corporate Communications & Investor Relations913.754.7054askinner@egov.com STEVE KOVZANChief Financial Officer913.754.7007stevek@egov.com NASDAQ: EGOV www.egov.com/investors